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JK Cement Ltd Stock Analysis

Large Cap
Evaluated by 1586 users | BSE: 532644 | NSE: JKCEMENT |
Cement & Construction Materials

A leading cement manufacturer in the country, JK Cement Limited is an affiliate of the multi-disciplinary industrial conglomerate JK Organisation, which was founded by LalaKamlapat Singhania. The company’s operations commenced with commercial production...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
JK Cement Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.56%10.45%11.65%5.78%7.41%6.67%9.24%11.68%9.85%12.63%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,0942,5472,9122,7963,3573,5553,7564,5914,9815,464
Y-o-Y Gr. Rt.-21.6%14.3%-4%20.1%5.9%5.6%22.3%8.5%9.7%
Adjusted EPS (Rs.) 8.6126.3833.6213.8622.2113.8831.1450.7542.0670.88
Y-o-Y Gr. Rt.-206.4%27.5%-58.8%60.3%-37.5%124.4%63%-17.1%68.5%
Book Value per Share (Rs.) 163.92184.32210.24220.71235.47241.72267.64307.08374.38404.94
Adjusted Net Profit 60.218423596.915597.1218355325548
Net Op. Cash Flow (Rs. Cr.) 2565223841874345897127907111,092
Debt to Cash Flow from Ops 5.142.333.3112.386.014.493.712.983.322.53
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
JK Cement Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.2%10.2%13.3%9.7%
Adjusted EPS 26.4%26.1%31.5%68.5%
Book Value per Share 10.611.514.88.2
Share Price 38.6% 34% 45.4% 154.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 4.3712.614.575.619.125.8212.2317.6612.918.19
Operating Profit Margin (%) 13.3420.3819.3113.4313.8814.6318.4716.616.3422.22
Net Profit Margin (%) 2.877.248.073.474.632.735.87.736.5210.02
Debt to Equity 1.150.940.871.51.581.561.411.10.820.88
Working Capital Days 95899111210196918997109
Cash Conversion Cycle 222533443727134918
Entity Percentage Holding
Promoters 52.64%
Institutions 37.49%
Non-Institutions 9.87%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of JK Cement Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that JK Cement Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of JK Cement Ltd's performance infers:

JK Cement Ltd earnings have grown by 26.1%, whereas share price has appreciated 34% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of JK Cement Ltd share prices over the last 10 years. Here is what we found out:

JK Cement Ltd share price has appreciated 35.8% annually over the past ten years.

A leading cement manufacturer in the country, JK Cement Limited is an affiliate of the multi-disciplinary industrial conglomerate JK Organisation, which was founded by LalaKamlapat Singhania. The company’s operations commenced with commercial production at its first grey cement plant at Nimbahera, Rajasthan in May 1975. Subsequently, the company also set up 2 more units in Rajasthan at Mangrol and Gotan. In the year 2009, the company extended its

A leading cement manufacturer in the country, JK Cement Limited is an affiliate of the multi-disciplinary industrial conglomerate JK Organisation, which was founded by LalaKamlapat Singhania. The company’s operations commenced with commercial production at its first grey cement plant at Nimbahera, Rajasthan in May 1975. Subsequently, the company also set up 2 more units in Rajasthan at Mangrol and Gotan. In the year 2009, the company extended its footprint by setting up a green-field unit in Muddapur, Karnataka giving it access to the markets of south-west India. In the year 2014, the company further expanded its capacity in the north with brownfield expansion of 1.5 MnTPA integrated unit at Mangrol and split grinding unit of 1.5 MnTPA at Jhajjar. The new grinding units in Aligarh and Balasinor further strengthening JK Cement's growing footprints and making it one of the top cement manufacturers in the country.

JK Cement was the first company to install a captive power plant in the year 1987 at Bamania, Rajasthan and the first cement company to install a waste heat recovery power plant to take care of the need of green power. It is steadily enhancing its capacity, diversifying range of products, ushering in advanced technology and quality assurance, and above all, expanding its presence nationally and internationally. Its brands continue to enjoy the trust of millions of consumers for the high quality and innovation benchmarks that it has attained. Superior products and a strong Brand name, an extensive marketing and distribution network and the technical know-how represent JK Cement's abiding strengths.

Business area of the company

J.K. Cement Limited is engaged in cement business. The Company produces grey cement, white cement and water proof. The Company manufactures grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India. Grey cement produced by it consists of ordinary portland cement (OPC) and portland pozzolana cement (PPC). OPC has three grades, which consist of 53-grade, 43-grade and 33-grade. Its cement products are marketed under the brand names: J.K. Cement and Sarvashaktiman for OPC products; J.K. Super for PPC products, and J.K. White and Camel for white cement products.

Awards and Recognitions

Financial Year 2019-2020

  • JK Cement SwachhAbility Run bags CSR Campaign of the year and Build Safe (JK Super Cement) awarded the Best Social Media Campaign at Realty Awards in association with IGBC
  • JK Cement Ltd. honored with the title of 'India's Best Company of the year 2017
  • Golden Peacock Eco-Innovation Award
  • Gold at ACEF for SwachhAbility Run
  • Gold at ACEF for 'Bal Sabha at Diggi Mela'
  • Five Star Rating by IBM for Mangrol Mines
  • Brand Revitalization Award by GMEA
  • Best Place to Work in Cement Industry by IHRC
  • 2nd prize for 'Best Energy Efficiency Organization' by CII
  • Certificate of Excellence Gotan
  • Certificate of Excellence Nimbahera
  • Dr.Gaur HariSinghania Chairman, JK Cement Ltd being honoured with Lifetime Achievement Award by Justice Virendra Jain

Financial Year 2020-2021

  • Brand of the Year' in the 'Cement & Concrete' segment at Realty+ Interior and Exterior Awards 2020.
  • Prestigious Brands of Asia 2019 Award at Global Business Symposium, Malaysia.
  • The Prestigious Super brand Award for JK Wall Putty and JK White Cement.
  • 'Top Rankers Excellence Award for Marketing Leadership' by Top Rankers Management Club.
  • 9th Global Customer Engagement Awards for the JK Cement WallMaxX TVC.
  • JK Super Cement recognized by the Madhya Pradesh Police for 'Best initiative for Improved Road Safety'.
  • GERA Excellence Award 2019 (Global Entrepreneurship Recognition Award) for Innovative CSR Best Practices.
  • JK Super Cement conferred with 'Safety Campaign of the Year' and 'Long-term Rural Engagement Program of the Year' at ACEF Asian Leaders Awards 2019.
  • JK Cement awarded with the Best Growth Performance in the Cement category at Dun & Bradstreet Corporate Awards 2019.
  • 'Great Place to Work 2020' certification.
  • Top Challengers 2020 award by Construction World Magazine Awards 2020.
  • Platinum Award from Apex India Foundation for Excellence in Occupational Health & Safety.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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